BIG news in the world of business, with Gold Coast millionaire Clive Palmer’s Mineralogy making a bold move on Friday.
It has moved to prevent Citic Pacific from getting access to iron ore in Western Australia, after the Hong Kong Government commenced legal proceedings against the the Chinese-owned company.
Action has been launched against a former chairman five former directors in respect to billions of dollars in losses.
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The service of termination notice follows the service of a default notice by Mineralogy upon Citic Pacific Limited on July 12, 2012.
“Not only has Citic Pacific Limited failed to rectify the defaults in the notice, the directors of Citic Pacific failed to declare the default notice to the market in Hong Kong and may have breached the law,’’ said Mineralogy Director Clive Mensink.
“The Hong Kong Stock Exchange and authorities should immediately commence an investigation into the failures of Citic Pacific and its directors to declare the default notice in 2012 and the current Termination Notice to the market in accordance with the law and rules of the Hong Kong Stock Exchange.
“Not only has Citic Pacific Limited failed to disclose important material facts to the market, they have sought suppression orders and obtained from Australian court orders to suppress information from the market and Citic Pacific shareholders.
“The current Board is suppressing information in the same way the former Board did. Five of those directors are now facing action from the Hong Kong authorities.”
Mr Mensink said despite the fact the notice of termination was served on Citic Pacific Limited on September 12, 2014, the directors had failed to make a public announcement or inform the market.
“The Sino Iron Project has a capital cost of more than $8 billion and the failure of the directors to inform the market could be a criminal offence,’’ he said.
“Mineralogy had evidence that the current board of directors’ accounts from Citic Pacific Limited had misled the market and Mineralogy was considering making a complaint to the Hong Kong authorities.
“Some of the current directors of Citic Pacific were also directors at the time of the actions, which are the subject of the legal proceedings the authorities have commenced against the company’s former chairman and directors.
“One must wonder why those directors have not also been subject to legal proceedings brought by the authorities,’’ Mr Mensink said.
Main image courtesy of mammamia.com.au.